The US economy grew by 2.6 percent in the second quarter compared with a year earlier. Growth increased considerably compared with the first quarter when the world’s largest economy’s growth was 1.2 percent.
This is an initial estimate of economic growth in the past period. Economists had generally calculated an increase of US Gross Domestic Product (GDP) by 2.7 percent. Growth in the first quarter was revised by a previously reported 1.4 percent.
The stronger growth is partly due to higher consumer spending and corporate investment in the United States. Trade also contributed to the growth of the US economy.
In the first six months of this year there was an economic progress of 1.9 percent. US President Donald Trump has declared an ambitious goal for annual growth of 3 percent.
Consumer confidence dropped slightly
Consumer confidence in the United States fell slightly in July as expected. This is evidenced by final figures published by the University of Michigan on Friday.
The index reflecting sentiment among US consumers went to 93.4, from 95.1 in June. In a preliminary estimate, a position of 93.1 was reported, equivalent to the expectations of economists.
Confidence in the eurozone economy remained almost stable in July compared with the previous month. That was reported by the European Commission on Friday.
The index with which the committee is measuring confidence went from 111.1 to 111.2 this month. Consequently, trust remains well above the long-term average, which is reflected by a 100 position.
According to the commission, confidence in the construction and services sector increased, but in the retail and consumer sectors there was a slight decline. At industry the sentiment remained unchanged.
The French economy grew by 0.5 percent in the second quarter compared with the previous quarter. This was reported by the French statistical office on Friday on the basis of an initial estimate.
This keeps the growth rate unchanged compared to the two preceding quarters. Compared to a year earlier, France’s economy went up 1.8 percent.
The steady economic growth is a riot for French President Emmanuel Macron, who announced drastic reforms of the French labor market.
It was also known that the July inflation rate remained unchanged at 0.7 per cent in July compared with June. French consumer spending grew by 0.5 percent year-on-year in June.